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The
Consumer Protection Act 2019 was notified on August 9th 2019. However, it came into effect
from July 20th 2020.
While
retaining certain old provisions, the New Act has certain new provisions that
tightens the existing rules to further safeguard consumer rights and create
exhaustive consumer protection law.
New
provisions under Consumer Protection Act 2019
A
person who buys any goods or services for a consideration, which has been paid
or promised or partly paid and partly promised, or under any system of deferred
payment also includes the user with approval of such goods or beneficiary of
services.
As
per Consumer Protection Act 2019, the expression “buys any goods” and ‘hires or
avails any services” includes offline or online transactions through electronic
means or by teleshopping or direct selling or multi-level marketing.
As
per the provisions of the Act, commercial purpose does not include use by a
person of goods bought and used by him exclusively for the purposes of earning
his livelihood by means of self-employment.
Consumer is having the following six
consumer rights under the Act:
"goods" means every kind of movable property and includes "food" as defined in clause (j) of sub-section (1) of section 3 of the Food Safety and Standards Act, 2006;
These are quasi-judicial bodies established under the Act to provide simple, speedy and inexpensive redressal to the grievances of the consumers. These have been established at three levels: District, State and National known as:
CPA2019 |
District Commission: Upto 1 cr |
State Commission: 1 cr – 10 cr |
National Commission: above 10 cr |
A complaint shall be instituted in a
District Commission within the local limits of whose jurisdiction the:
"Deficiency" means any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance which is required to be maintained by or under any law for the time being in force or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service and includes—
"Unfair
contract" means a contract between a manufacturer or trader or service
provider on one hand, and a consumer on the other, having such terms which
cause significant change in the rights of such consumer, including the
following, namely: —
Misleading
advertisement" in relation to any product or service, means an
advertisement, which—
Manufacturers,
advertising agencies, celebrity endorsers and publishers can be made liable.
E
commerce under CP Act 2019 means buying or selling of goods or services
Including digital products over digital or electronic network.
“e-commerce
entity” means any person who owns, operates or manages digital or electronic
facility or platform for electronic commerce, but does not include a seller offering
his goods or services for sale on a marketplace e-commerce entity;
The
New Act provides power to Central Government to establish Central Consumer
Protection Authority (CCPA) to regulate matters relating to violation of rights
of Consumers, unfair trade practices and false or misleading advertisements
which are prejudicial to the interests of public and Consumer and to promote,
protect and enforce the rights of Consumer as a Class.
The
Central Authority shall consist of a Chief Commissioner and such number of
other Commissioner to be appointed by the Central Government.
Yes,
the Central Authority shall have an Investigation Wing headed by a Director
General for the purpose of conducting inquiry or investigation.
The
Central Authority shall protect, promote and enforce the rights of the
consumers as a class, and prevent violation of Consumers Rights under the Act.
Yes,
the Central Authority may inquire or cause an inquiry or investigation to be
made into violations of Consumer Rights, either Suo motu or on a complaint
received or on the directions from the Central Government.
Yes,
the Central Authority can file complaints before the District Commission, the
State Commission or the National Commission as the case may be.
A
person aggrieved by any order passed by the Central Authority may file an
appeal to the National Commission within a period of thirty days from the date
of receipt of such order.
"product
seller is a person who, in the course of business, imports, sells, distributes,
leases, installs, prepares, packages, labels, markets, repairs, maintains, or
otherwise is involved in placing such product for commercial purpose and
includes—
It
means the responsibility of a product manufacturer or product seller, of any
product or service, to compensate for any harm caused to a consumer by such
defective product manufactured or sold or by deficiency in services relating
thereto;
It
means a complaint filed by a person before a District Commission or State
Commission or National Commission, as the case may be, for claiming
compensation for the harm caused to him;
"harm", in relation to a product liability
includes—
any
harm caused to a product itself or any damage to the property on account of
breach of warranty conditions or any commercial or economic loss, including any
direct, incidental or consequential loss relating thereto.
No, damage of the product itself cannot be the base for
product liability compensation.
Manufacturer or a product service provider or a product
seller,
A product service provider shall be liable in a product
liability action, if—
A product seller who is not a
product manufacturer shall be liable in a product liability action,
A complaint:
A
complaint can be presented by the complainant in person or by his agent.
It can even be sent by registered post along with the court fee.
Yes.
Either at the first hearing after admission, or at later stage if the District
Commission is of the view that, there exists an element of settlement, can
refer the complaint to Mediation with the consent of the parties.
Also, parties at any stage of the complaint can opt for
settlement through mediation.
No,
There is no fee prescribed for Mediation.
Consumer
Commissions are quasi-judicial bodies to provide simple and speedy justice.
These have been kept free from the complicated judicial procedures. The manner
is quite informal and free from the shackles of the Civil Court. There is no
need for an advocate or any other pleader and consumer can himself or through
his representative file and represent his complaint.
The
complaint shall be filed within two years from the date on which the cause of
action has arisen. This would mean two years from the day the deficiency in
service or defect in goods has arisen/detected. This is also known as the
limitation period for filing the complaint.
Every
complaint filed before District Commission/ State Commission/ National
Commission shall be accompanied by a fee as specified, in the form of crossed
Demand Draft drawn on a nationalized bank or through a crossed Indian Postal
Order drawn in favour of the Registrar of the State Commission and payable at
the respective place where the State Commission or the National Commission is
situated. The concerned District Commission shall deposit the amount so
received.
Any
consumer who is aggrieved by the order of a commission can prefer an appeal in
the higher commission within a period of thirty days from the date of the
order. The appeal can be preferred
o
against
order of the District Commission before the State Commission
o
against
order of the State Commission before the National Commission
o
against
order of the National Commission before the Supreme Court
Within 30 days
Within 30 days
Within 45 days
Every complaint filed shall be accompanied by a fee, as
specified in the table given below, in the form of crossed Demand Draft drawn
on a nationalized bank or through
a
crossed Indian Postal Order in favour of the President of the District
Commission or the Registrar of the State Commission or the Registrar of the
National Commission, and payable at the respective place where the District
Commission, State Commission or the National Commission is situated, or through
electronic mode as per arrangement made by the Commission concerned.
Sl.No |
Value of Goods or
Service paid as Consideration |
Court
Fee |
District
Commission |
||
1 |
Upto 5 Lakh |
Nil |
2 |
Above 5 Lakh
– Upto 10 Lakh |
Rs 200 |
3 |
Above 10 lakh
– Upto 20 Lakh |
Rs 400 |
4 |
Above 20 Lakh
– Upto 50 Lakh |
Rs 1000 |
5 |
Above 50 Lakh
– Upto 1 Crore |
Rs 2000 |
State
Commission |
||
6 |
Above 1 Crore
– Upto 2 Crore |
Rs 2500 |
7 |
Above 2 Crore
– Upto 4 Crore |
Rs 3000 |
8 |
Above 4 Crore
– Upto 6 Crore |
Rs 4000 |
9 |
Above 6 Crore
– Upto 8 Crore |
Rs 5000 |
10 |
Above 8 Crore
– Upto 10 Crore |
Rs 6000 |
National
Commission |
||
11 |
Above 10
Crore |
Rs 7500 |
For
appeal before State Commission and National Commission, 50% of the total award
amount passed by the low.